Prithviraj Kothari | In India, the hallmarking of gold jewellery will become mandatory for gold jewellers in the coming years. The government of India announced its decision to make it very important for the gold jewelleries sold in India to be approved under the BIS (Bureau of Indian Standards). A hallmark in gold jewellery is a guarantee of purity and fineness of gold.
In India, the Bureau of Indian Standards (BIS) is authorized to analyze the purity of gold. The BIS licensed assessment and hallmarking centers grant hallmarks to BIS-certified gold jewelers.
In Prithviraj Kothari’s opinion, the hallmarking of gold jewelleries will change the dynamics of the gold market. It eliminates non- hallmarking gold pieces of jewellery sold which will protect the consumer rights to a quality product. Since most of the non-hallmarked gold jewelleries are sold to unaware consumers in the small cities and rural areas who lack the knowledge of the benefits of hallmarked gold jewellery and the drawbacks of non-hallmarked gold jewellery.
The initiative to make it mandatory for all gold jewelleries be assessed first by the Bureau of Indian Standards (BIS) before it gets sold in the market is a positive one because it protects the consumers from being sold impure gold. It will also help decrease the fraudulent selling of impure gold to unaware buyers in the gold jewellery business sector.
The government will provide a notification on hallmarking by January 15, 2020, giving the jewellers a year to register with the Bureau of Indian Standards (BIS) and to exhaust their stocks. The formulated standards of the BIS for gold jewellery are of three grades, the 14, 18 and 22 carats. Bullion dealers and jewelers in India will experience an urgent push to clear all the non-hallmarked stock they own. Otherwise, they will be forced to meet all their jewelleries to make hallmarked ones where they, unfortunately, will lose jewellery making charges.
According to Prithviraj Kothari, the non-hallmarked jewelers will face great loss as the one year period draws closer. Therefore it will be necessary to provide discounts to consumers for non-hallmarked jewellery to clear up all the non-hallmarked stock.
Currently, there are only 30,000 jewellers out of an estimated 3 lakh jewellers in the country that have got a licensed approval from the Bureau of Indian Standards (BIS) to sell hallmarked jewellery. This year 2019, out of 1,000 tonnes of gold consumed in the country, about 450 tonnes was hallmarked. After the stringent governmental policy, the estimation predicted for the next year 2020 should increase the amount of certified gold jewellery sold in the country and decrease the amount of non-hallmarked gold jewellery to its minimum. The government has left no room for negotiation.
The gold jewelers will have to seek immediate measures to keep up with the ongoing change in the dynamics of gold jewelley in the Indian market. Jewellers will have to develop new strategies on how to get rid of their non-hallmarked gold jewellery.
In India, the Bureau of Indian Standards (BIS) is authorized to analyze the purity of gold. The BIS licensed assessment and hallmarking centers grant hallmarks to BIS-certified gold jewelers.
In Prithviraj Kothari’s opinion, the hallmarking of gold jewelleries will change the dynamics of the gold market. It eliminates non- hallmarking gold pieces of jewellery sold which will protect the consumer rights to a quality product. Since most of the non-hallmarked gold jewelleries are sold to unaware consumers in the small cities and rural areas who lack the knowledge of the benefits of hallmarked gold jewellery and the drawbacks of non-hallmarked gold jewellery.
The initiative to make it mandatory for all gold jewelleries be assessed first by the Bureau of Indian Standards (BIS) before it gets sold in the market is a positive one because it protects the consumers from being sold impure gold. It will also help decrease the fraudulent selling of impure gold to unaware buyers in the gold jewellery business sector.
The government will provide a notification on hallmarking by January 15, 2020, giving the jewellers a year to register with the Bureau of Indian Standards (BIS) and to exhaust their stocks. The formulated standards of the BIS for gold jewellery are of three grades, the 14, 18 and 22 carats. Bullion dealers and jewelers in India will experience an urgent push to clear all the non-hallmarked stock they own. Otherwise, they will be forced to meet all their jewelleries to make hallmarked ones where they, unfortunately, will lose jewellery making charges.
According to Prithviraj Kothari, the non-hallmarked jewelers will face great loss as the one year period draws closer. Therefore it will be necessary to provide discounts to consumers for non-hallmarked jewellery to clear up all the non-hallmarked stock.
Currently, there are only 30,000 jewellers out of an estimated 3 lakh jewellers in the country that have got a licensed approval from the Bureau of Indian Standards (BIS) to sell hallmarked jewellery. This year 2019, out of 1,000 tonnes of gold consumed in the country, about 450 tonnes was hallmarked. After the stringent governmental policy, the estimation predicted for the next year 2020 should increase the amount of certified gold jewellery sold in the country and decrease the amount of non-hallmarked gold jewellery to its minimum. The government has left no room for negotiation.
The gold jewelers will have to seek immediate measures to keep up with the ongoing change in the dynamics of gold jewelley in the Indian market. Jewellers will have to develop new strategies on how to get rid of their non-hallmarked gold jewellery.
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